Tenant's Default Excused in Luxury Deregulation Proceeding

LVT Number: #24497

Landlord applied for high-rent/high-income deregulation of tenants' rent-stabilized apartment in 2010. The DRA ruled for landlord after it notified tenants of landlord's application and tenants failed to answer within 60 days. Tenants appealed, claiming that they had a valid excuse for their default. When they received the notice, their son was hospitalized with a serious illness. One of the tenants also lost her job at this time. In their haste to respond, they mailed the answer form to the landlord instead of to the DRA. Tenants also maintained that their household income was below the deregulation threshold during 2008 and 2009.  The DHCR ruled for tenants and reopened the case so that the DRA could verify if tenants' income was below the deregulation threshold.